Singapore’s April home sales dropped 51% from a record in March as developers marketed fewer projects as residential prices posted the smallest gain in three quarters.
Home sales fell to 1,375 units in April, according to data from the Urban Redevelopment Authority released today. Sales in March rose to a record 2,793 units.
The island-state’s private residential property price index rose 0.6% in the three months ended March, the slowest pace in three quarters, according to data by the authority. Government measures in January, the seventh round of curbs in about four years, included an increase in the stamp duties for homebuyers by 5%age points to 7%age points.
“Developers couldn’t sustain the pace of launches they had in March, so we are seeing fewer sales in April,” said Alan Cheong, senior director of research and consultancy at broker Savills (Singapore) Pte. “The month of May will probably see the same pace of launches as April. We may see a pickup from the start of the third quarter.”
Home sales rose to a record in March, rebounding from a 14- month low in February and the highest since the government started releasing the information in June 2007, the data showed.
The curbs in January also included higher taxes on permanent residents when they buy their first home, and for Singaporeans starting with their second purchase.
Singapore will offer five residential sites in May which can yield about 2,725 homes, according to a government statement today.
Source : Edge – 15 May 2013